Single mom with no credit.?

goddessofddrrave: Single mom with no credit.?
Ok, I’m 19 and not exactly sure how this credit and credit score thing works.

I’ve applied to almost every credit card there is, but I kept getting denied, leading me to believe that I had a HORRIBLE credit score. So, I signed up for one of those free credit report things through the bank(Privacy Assist through Bank of America), only to find out that I have NO credit score.

After calling customer service, the lady on the phone told me that, “If you have no lines of credit, you won’t have a credit score.”

Well, how am I supposed to get a line of credit? I’m about to start school, but I don’t need a student loan because my financial aid has taken care of my tuition, and I can’t take out a car loan because I couldn’t afford to pay it back with the little money I do have. So what other ways are there?

I’ve checked my credit report and I do have a hospital bill that’s gone to collection(and has BEEN on collection for awhile), and LOTS of “inquiries” on my credit report(the dozens of credit cards I applied for, but never got).

Where does that leave me? I want to build up my credit score so that when I do apply for credit cards, and eventually a house, I have GREAT credit and get instantly approved, but where do I start?

Answers and Views:

Answer by AMK000
For information regarding credit cards and credit card score, check out this website. Website contains each and every info regarding credit cards and loans.

. info

Answer by Jenna P
I had the same problem as you. What I ended up doing is going to my bank and requesting a secured credit card with Visa. Basically, what that means is that the bank holds a certain amount of money in your bank account so that you can not withdraw it. The credit card company uses that money as collateral. It is a good way to start building some credit. Hope this helps.

Answer by Dixie Darlin’
You will have to start with getting a secured credit card, stop applying for the others, you will only be denied.

Go to the bank or credit union you do business with, ask them if they have a secured credit card, deposit $ 300-$ 500 into the account. Use the credit card each month for small amounts, like gas or groceries and pay it off in full.

After a few months you can try for a unsecured card again, store retail cards and gas cards are normally easier to get.

The way to build your credit is to make your payments on time each month. It takes 24 months to establish a good credit rating.

FOR COLLECTION:
If the hospital bill has been in collections for awhile, try to negotiate a “pay for deletion” agreement with the debt collector. This means that in exchange for payment they agree to completely delete the account from your credit report.

If the collection is 1-2 (based on your age) years old then offer them 50% of the total, if they agree get the agreement in writing before you mail them a money order for payment. Never give a debt collector access to your bank account.

Good Luck!

Prepaid credit cards DO NOT build credit, they are prepaid so you are not “borrowing” money, you have to borrow money and repay it in order for the account to be reported to the credit bureaus.

Answer by Jon H
You are guaranteed approval with a Prepaid card.
Go to my website www.reverseoutflow.com click on “Go Prepaid” and the top and review my article, it has tons of info on prepaid cards. The plus for you is that they don’t do a “credit check”. I also have some good deals under the “Credit Repair” tab on my site. There you can go to a few places that will help you fix any problems with your credit.
direct link to prepaid articles:

Answer by Jim Crowbar
Hello. You won’t get anywhere until you pay that collection. Pay that. That must be the first thing you do. Remember to get proof of the collection being paid. You will need that to get a credit card. In 3 months try again for a student visa or mastercard. Try to apply through your school or at a bank in person. Dress sexy but not too sexy (I’m not kidding). Show them proof the Collection was paid. If you get declined offer cash as security. Some companies will issue with as low a limit as $ 250. That would get you started for sure. Pay that bill on time every single bloody time like you are feeding your child. Miss one payment and credit will go down again. When your credit has improved in 6 to 12 months apply for another card with a slightly higher limit like 2K. Pay that like your life depends on it. In a year or two your credit will be completely rehabbed. Good luck.

Answer by Allison
You could try this, which is totally opposite what most Americans are taught.

First, pay the hospital bill. See them in person, take a list of all your expenses& your income and assets with you, and see what you can work out.

Don’t fall for the “I’ll always have a car payment” line Instead, get a thousand dollar car (later, when you need one) instead of doing that $ 400 car payment every month for 5 years. Without that, you can save like crazy for a better car that you also pay for in cash. Eventually, you will have a VERY nice car, that you paid for in cash.

Then, you keep saving until you have a 20% down payment for your first home. While you rent, pay your rent & utilities on time. Find a company that does manual mortgage applications (they don’t depend on a credit score).

Pay for everything else in cash.

America is incredibly stupid in my opinion. As we save money and have assets and use less or no credit cards because we pay for things w/ cash – our credit score goes DOWN. Idiotic.

I don’t use credit cards and probably don’t have a credit score and somehow I’m fine.